Microsoft / O365

Decoding Microsoft Copilot Licensing: What You Need to Know

Introduction to Microsoft Copilot Licensing

  • Microsoft Copilot is an AI-powered tool that’s transforming the digital workspace.
  • To use Copilot, you need a Microsoft 365 E3 or E5 license and an Azure Active Directory account. You also need a “Microsoft 365 Copilot license” that can be assigned in the Microsoft 365 admin center (go to Billing > Licenses). This Copilot license is extra but can only be added if you have E3 or E5.

Understanding Microsoft Copilot

Microsoft Copilot is a powerful tool that leverages the power of AI to streamline work processes and enhance productivity. But what exactly is Microsoft Copilot, and what makes it unique?

Microsoft Copilot is an AI-powered assistant that uses Large Language Models (LLMs) and data from the Microsoft Graph to provide personalized assistance. This makes your interaction with Microsoft 365 apps more intuitive and efficient, enhancing your productivity and efficiency.

Key features of Microsoft Copilot include:

  • Personalized Assistance: Microsoft Copilot provides personalized assistance based on your unique work patterns and needs.
  • Integration with Microsoft 365 Apps: Copilot is integrated into various Microsoft 365 apps, making it a seamless part of your digital workspace.
  • Use of Large Language Models (LLMs): Copilot uses LLMs to provide intelligent and contextually relevant responses.
  • Data Security and Privacy: Copilot adheres to EU Data Boundary regulations, ensuring that your data is handled with the utmost care and respect for privacy.

Microsoft Copilot Licensing

Users of Copilot need to have a Microsoft 365 E3 or E5 license and an account with Azure Active Directory. Additionally, they should be given a “Microsoft 365 Copilot license” through the Microsoft 365 admin center (found under Billing > Licenses). So, while it’s an extra license, it can only be added to E3 or E5.

Understanding Microsoft’s Licensing Terms

Understanding Microsoft’s licensing terms is crucial for businesses planning to use Microsoft Copilot. These terms outline businesses’ rights and responsibilities regarding using Microsoft’s products and services.

Key licensing terms include:

  • Microsoft’s Product Terms outline businesses’ rights and responsibilities regarding using Microsoft’s products. They include details about the licensing of Microsoft Copilot.
  • Services Provider Use Rights (SPUR): These terms apply to businesses that provide services using Microsoft’s products. They outline the rights and responsibilities of these businesses.
  • Independent Software Vendor (ISV) EULAs: These End User License Agreements apply to businesses that use Microsoft’s software in their products. They outline the rights and responsibilities of these businesses.
  • Microsoft Products and Services Data Protection Addendum (DPA): This supplement outlines Microsoft’s data protection and privacy commitments. It applies to all Microsoft’s products and services, including Microsoft Copilot.
  • Service Level Agreements (SLA) for Online Services: These agreements outline Microsoft’s commitments to the availability and performance of its online services. They apply to all of Microsoft’s online services, including Microsoft Copilot.

FAQs

Is Microsoft Copilot included in the standard Microsoft 365 license?

To use Microsoft 365 Copilot, companies need a Microsoft 365 E3 or E5 license and a Microsoft 365 Apps for Enterprise subscription.

What are the Services Provider Use Rights (SPUR)?

The Services Provider Use Rights (SPUR) apply to businesses that provide services using Microsoft’s products. They outline the rights and responsibilities of these businesses.

Author

  • Fredrik Filipsson

    Fredrik Filipsson possesses 20 years of experience in Oracle license management. Having worked at Oracle for 9 years, he gained an additional 11 years of expertise in Oracle license consulting projects. Fredrik has provided assistance to over 150 organizations worldwide, ranging in size and tackling various Oracle licensing challenges, including Licensing Assessments, Oracle audits, Oracle ULAs, and more.